Wedding tech startup felled by its own married co-founders
- Dan Primack, author of Axios Pro Rata
Online wedding vendor marketplace Borrowed & Blue last November raised $7 million in VC funding led by Foundry Group. But now the Charlottesville, Va.-based startup is shuttered -- and more than two dozen employees are out of work — after the board discovered alleged financial improprieties related to Borrowed & Blue's married co-founders, Adam and Christin Healey.
What happened? Sources tell Axios that Christin used a company credit card to make large personal purchases, both domestic and international. Adam claims that he was unaware of the charges until after a company audit. There also were broader questions about Chirstin's role and compensation, as she originally was introduced to investors as a non-operating co-founder, but that seemed to shift over the past year.
Scoop credit: Many of these details also appear in a local CBS affiliate report.
What now? There was still some money in the bank that is being returned to investors, and we hear there is an asset sale process in place. The company's website remains online.
Due diligence: Expect this situation to be used by other VCs as an example of why they won't back married co-founders, despite notable success stories like Eventbrite.
For the record: Foundry Group declined comment, and Adam Healey did not return my email.